If the plan is approved, the agency has a tax obligation to comply additionally with stimulus checks.

If the proposal is approved in the Biden Administration stimulus package to extend the “Child Tax Credit”,the Internal Revenue Service (IRS) will thus have a higher workload in the midst of the newly opened tax season, which could complicate the processing and sending of the third $1,400 stimulus check,especially in cases where additional information from beneficiaries is required to process the payment.

While one of the current government’s priorities is the distribution of direct payments to individuals and families as part of the so-called “US Rescue Plan,” the agency will have to balance its priorities to meet both commitments on time once they are approved in the U.S. Congress as seen.

On Tuesday, the IRS indicated in a press release that it had completed the process of sending the first and second round checks, with 160 million payments and 147 million, respectively, and that it will focus on this contribution season’s tax refunds.

The first $1,200 stimulus checks under the CARES act began to be deposited into beneficiary bank accounts about three weeks after the statute was approved in March.

The second process under the stimulus law that was passed in December was a little more agile with the deposit of the first checks less than a week after then-President Donald Trump stambed his signature to the legislation.

The expectation is that in a third round the timeline will be equal to the previous one with most direct deposits made in a week.

What is the extension of the Child Tax Credit

But this time, in addition to stimulus checks and tax refunds, the IRS would also need to adjust its systems and prepare for the Distribution in July of the funds related to that credit.

If the legislation is finally passed, the government through the tax agency must distribute checks of $300 per month for each child under the age of 6, as well as checks of $250 for each child between the age of 6 and 17.

These payments would be equivalent to a total of $3,600 in a year for the youngest and $3,000 a year for those over 6 years old up to 17.

The underage child tax credit program already exists and the IRS is the agency responsible for applying the calculation when the taxpayer applies on the tax return. Under current law, the credit is up to $2,000 annually for each child under the age of 17.

The new proposal is to increase this amount to a maximum of $3,600 per year, and send it to eligible families in monthly payments, rather than keep people waiting an entire year for a one-time payment.

Families would receive benefits even if they owe the government more money than the value of this credit.

Original Note: Propuesta de estímulo de Biden para enviar cheques mensuales de $300 a padres con hijos es un reto para el IRS | El Diario NY